July 4, 2016

Michigan's two largest electric
utilities are generally solid performers when it comes to their energy
efficiency programs, but are in the middle of the pack nationally with their
use of renewable energy, a new report shows.

The report from Boston-based nonprofit Ceres,
released Tuesday, ranked 30 of the nation's largest investor-owned utilities on
renewable and efficiency performance. DTE Energy Co. andCMS Energy ranked
in or near the top 10 for their single-year energy efficiency savings, but fell
in the rankings compared to other utilities for their use of renewable power
sources.

Detroit-based DTE ranked 19th for its use
of renewable energy, sixth for its incremental efficiency savings — defined
here as energy savings in a single reporting year from either new participants
or new programs — and 23rd for life-cycle energy savings. All were based as a
percentage of retail sales in 2014, the most recent data available.

"As one of the largest energy
companies in the United States, DTE Energy holds itself to the highest
standards across all of our operations everyday, including the work
continuously underway to deliver energy efficiency results and transition to
cleaner energy generation," said Stephanie Beres, media relations manager
at DTE Energy.

"On efficiency, they're definitely
doing a solid job, and with the right encouragement they would move their way
to the top of the pack," said Dan Bakal, director of electric power for
Ceres, a nonprofit that advocates for sustainable practices, including in
business. "I think the rankings actually ... reflect where they are, in
that they're doing some solid work and there's room for improvement."

Ceres' report expands on the nonprofit's
inaugural study in 2014. The group looked at investments in clean energy across
the U.S. amid a changing landscape that includes more demand for renewable
power and policy discussions at the state and federal level about reducing
carbon emissions.

In Michigan, lawmakers are debating changes
to the state's 2008 energy law that would replace existing standards for
renewable energy and energy efficiency with a combined goal of 35 percent by
2025. Michigan's existing energy law includes mandates that utilities generate
at least 10 percent of their electricity from renewable sources, a target that
has been reached, and offer savings of 1 percent of total retail sales through
efficiency programs.

Utilities that performed well in both areas
"are located almost entirely in states with more ambitious clean energy
policy goals such as California, Illinois, Massachusetts, Minnesota, New York,
and Oregon," the Ceres report states, "while utilities with poor results
are typically in states with weak policies, many of them being in the
Southeast."

Bakal said state policy "can play a
really important role" in determining how much emphasis a utility will
place on renewable power sources and efficiency programs. Ceres advocates for
standards in state policies.

The report illustrates that higher targets
are achievable and help create stability for investors, businesses and
ratepayers, said Alli Gold Roberts, Ceres' policy program manager.

"We are responding to customer
interest by investments in Michigan-based renewable energy that exceed current
requirements in state law," Consumers spokesman Dan Bishop said in a
statement.

"These investments include a new wind park being developed in
Huron County, dedication of a new community solar power plant with Grand
Valley State University, a solar power plant being developed with Western
Michigan University, as well as other green energy projects in the pipeline.
Consumers Energy customers have saved $1 billion since 2009 through energy
efficiency programs and we continue to invest in these programs."

Beres credited DTE with driving nearly $2
billion investment in the state's renewable energy infrastructure that in turn
created jobs, facilitated economic development and benefited Michigan communities.
"Over the next decade, DTE will continue work to fundamentally transform
the way the company generates electricity — and renewable energy
sources will continue to play an important, significant role in achieving this
goal."

The 30 companies included in the study hold
87 electric utilities across the country. Together, they comprise close to 60
percent of all U.S. electric sales in 2014. Ceres gathered data from state
annual reports, U.S. Securities and Exchange Commission filings and
other reports.

Its authors based their rankings on the
total amount of renewable energy sold to electric customers in 2014, including
that generated from utilities' own power plants, through purchase agreements
and with credits; the total energy efficiency savings utilities reported in
2014 from new participants and programs; and the total life-cycle energy
efficiency savings that factor in all utility programs and their anticipated
future savings.

Ceres said the utility companies delivered
more than 136,000 gigawatt hours of renewable energy to their customers in 2014
and reached annual energy efficiency savings topping 19,000 gigawatt hours — up
13 percent and 9 percent from 2013, respectively.